Call for OPEC to cut price of crude

Date: 16/11/00

By Simon Coss

ENERGY Commissioner Loyola de Palacio will try to convince OPEC countries to increase oil production and bring down global crude prices during a visit to Saudi Arabia this weekend.

Officials say she will use a speech at a meeting of OPEC ministers in Riyadh to "raise EU concerns once again" about oil production. But they stress that the visit has been planned for some time and is not directly linked to the recent increases in the price of crude.

De Palacio also intends to hold a series of bilateral meetings with ministers and representatives from oil-producing countries outside the Middle East, including Venezuela, Mexico and Russia.

At present, nearly all the Union's oil supplies come from North Africa and the Middle East, and the Commissioner's talks with other countries have fuelled speculation that she is examining ways of ensuring that Europe's energy imports come from a wider range of sources.

But experts point out that De Palacio will not be able to negotiate on behalf of EU oil companies in Saudi Arabia, as the Commission has absolutely no say over where European firms buy their supplies. They also stress that only the Middle East states currently have the capacity to increase production

The weekend of 17.11.00, Energy Commissioner, Loyola de Palacio, will try to convince OPEC countries to increase oil production and bring down global crude prices during a visit to Saudi Arabia.